The correct answer for traders who weren`t too seasick to take the test was (e) all of the above.

The Dow Jones industrial average closed down 1.04 at 1593.23 after a volatile day in which the 30-stock average reached new heights before noon, fell rapidly around 2 p.m., then reclaimed some of its losses in a late surge, only to fall back again near the close. The widely watched indicator experienced a 36-point swing in just a few hours of roller-coaster activity.

Volume on the New York Stock Exchange came to 175.73 million shares, up from 145.28 million Monday, making it the ninth most active day in stock market history. Nationwide turnover in NYSE-listed issues was 208.30 million shares.

In the daily tally on the Big Board, declining issues slightly outnumbered advances. The NYSE composite index of all its listed common stocks dropped 0.57 to 122.72.

Analysts were stumped as to why the market took its sudden plunge, but not really too shocked, since the market has been given to dramatic highs and record plunges since crossing the 1500 mark of the Dow industrial average for the first time less than two months ago.

Much of the downward activity followed remarks from widely respected First Boston analyst William Weiant, who lowered his opinion on money center banks.

These banks, he said, are faced with the prospect of lowering the value of their loans to Third World oil-exporting nations, which are being pressured by the crash in crude prices.

Point-plus losers among the bank stocks included Citicorp, down $1.75 at $48.37; Chase Manhattan, down $2.25 at $72.25; J.P. Morgan, down $3.12 at $62.62; and Manufacturers Hanover, down $2.12 at $42.37.

Traders also noted that the premiums for stock index futures contracts were narrowing, indicating some change of sentiment in that market.

``Those factors, coupled with the fact that the market is at an all-time high and sentiment on the street being somewhat positive, put stocks in a volatile position,`` said Lon Gorman, a senior trader at First Boston.

Analysts said investors were once again trying to sort out both the positive and negative effects of falling oil prices.

Oil prices have tumbled to six-year lows this week on signs that major producers are inclined to step up production to maintain revenues rather than try to defend their pricing structure.